Step #1 Mix strawberries & sugar together & let this stand for 15 mins.
Step #2 Preheat oven to 350 degrees F.
Step #3 Grease & flour a 13"x9" glass baking dish.
Step #4 Combine the strawberries & sugar mixture with the next six ingredients together In a large-ish mixing bowl & beat with electric beater on medium-high speed for 3 mins until well mixed.
Step #5 Pour into prepared pan & bake 60-65 mins, then cool 10 mins on a wire rack before removing completely from the baking pan.
Step #6 Cool COMPLETELY.
Step #7 Break the cooled cake into chunks larger than bite-sized & spread them out in a 15"x10" baking dish, making sure all the pieces are below the rim of the baking dish.
Step #8 If wanted, spread the optional 2 c of sliced fresh strawberries over the top of the cake pieces.
Step #9 In a large sauce pan mix the Danish Desert with the cold water.
Step #10 Bring it to a full boil & boil for 1 min, stirring constantly.
Step #11 If you opt to use the cream cheese, either mix it in with the Danish Desert hot pudding at this time, using an electric mixer on low (or use a large whisk), OR carefully pour the red pudding mixture into a large mixing bowl & just as carefully, mix the pudding & cream cheese together.
Step #12 [There will probably be small specks of cheese throughout the pudding mixture, & that's fine.
Step #13 Pour the pudding over the cake & strawberries, being careful to completely cover all of the cake & all of the strawberries.
Step #14 To avoid a top film on the pudding, cover the entire surface of the pudding with plastic wrap & let cake cool completely.